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Cryptocurrency

In the last two years, the ecosystem has lost more than just business. Even though the Supreme Court’s judgment on Wednesday will reduce friction for crypto startups, attract funding, and boost innovation, the lack of clarity on the legality of the technology can open a new front. The next challenge: getting a regulator that can set things in motion.

In the last two years, the ecosystem has lost more than just business. Even though the Supreme Court’s judgment on Wednesday will reduce friction for crypto startups, attract funding, and boost innovation, the lack of clarity on the legality of the technology can open a new front. The next challenge: getting a regulator that can set things in motion.

The RBI’s decision to prohibit banks and financial institutions from providing service to entities dealing with virtual currencies sounded the death knell for many small and upcoming businesses. But Mudrex, originally conceived as a cryptocurrency exchange, has managed to stay afloat and even clock growth. The Bengaluru-based startup now wants to achieve scale before diversifying.

An inter-ministerial committee set up to study cryptocurrencies has proposed a ban. It has also suggested criminalising dealing in private cryptocurrencies. Apart from spooking Indian developers, if these proposals become law, they may lead to a half-baked regulatory framework and push India behind in a world that is fast embracing cryptocurrencies.